Borders & Southern Petroleum, the London-based explorer with assets offshore the Falkland Islands, has raised £2 million from a single ultra-high-net-worth Middle Eastern investor to fund continued development of its Darwin gas condensate discovery.
The placing comprises 17,.4 million new shares at 11.5p each, a premium of approximately 42% to the closing price of 8.1p on 9 October.
The investor also receives 8.7 warrants exercisable at 20p per share for a period of 18 months, after which they lapse.
Chief executive Harry Baker said the company has been in discussions with the investor for several months and described him as exceptionally well-connected with a long history of deploying capital across the energy sector.
Proceeds will be used to cover licence and discovery area fees, technical and commercial studies and general administrative costs, with Baker saying the fundraise leaves the company fully funded until mid-2028.
The placing represents dilution of approximately 1.9% for existing shareholders.
Baker said the fundraise strengthens the company's position as it works to conclude a farm-out process, under which Borders & Southern is seeking a partner to share the cost and risk of appraising the Darwin discovery in exchange for a stake in the asset.
Darwin is a 100%-owned gas condensate discovery located in the South Falkland Basin, an area that has attracted exploration interest for decades but where development has been complicated by the remote location and lack of local infrastructure.
Following admission of the new shares, expected on or around 19 October, Borders & Southern's total issued share capital will stand at 911,201,296 ordinary shares.
